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Stripe Is the New PayPal

news.ycombinator.com

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Re: Stripe Is the New PayPal

#281

Post by [deleted] »

codexon wrote: post #278
dangrossman wrote: post #261

Earlier quoted context omitted.

> 1-2% seems possible for a legitimate business Somehow, all the businesses that currently exist and accept credit cards are doing so without more than 1-2% chargeback rates. That's a pretty good indicator that this isn't a problematic level to set the bar at. It's really much higher than you seem to think. 1 in 50 people walking into a store shouldn't have some payment problem so serious they have to go to their ban…

> Somehow, all the businesses that currently exist and accept credit cards are doing so without more than 1-2% chargeback rates. Citation needed. https://www.quora.com/Online-Payment-Gateways-and-Processing... "Amount over $2400-$2500 mark suddenly experiences a surge and it is almost 3.0% to 3.5%" I have personally had times where my chargeback rate has been above 2%. Being able to accept credit cards is more of a r…

[deleted]

Re: Stripe Is the New PayPal

#282

Post by bornabox »

disappointeddev wrote: post #272

Update: After speaking with Stripe I have decided to end our dealings. Unfortunately the issue could not be resolved. We are looking at alternate providers.

Could you explain with some details? I'd be quite interested in understanding what happened, and I imagine others would too.

Re: Stripe Is the New PayPal

#284

Post by hellbanner »

boomzilla wrote: post #188
viggity wrote: post #117

Earlier quoted context omitted.

There are many services that will do data sanitation. It can be difficult but certainly seems in the purview and capabilities of a $170 Billion company (visa). You can get pretty far with with fuzzy matching or just a simple levenshtein distance between name on record and name sent with order.

I understand UPS is probably not the most popular name around here, but their address API is actually quite good. I would also trust them with the data quality as they actually got real people verifying the addresses when packages are delivered.

Why isn't UPS popular around here?

Re: Stripe Is the New PayPal

#285

Post by sdalfakj »

ad_hominem wrote: post #169
pc wrote: post #115

Stripe CEO here. I just wanted to let everyone know that I'm taking a look at what happened here. OP (disappointeddev), if you could drop me an email, that'd be great: patrick@stripe.com.

The last time Patrick posted his email[1] soliciting feedback, I emailed him but never got a response. I'm sure being a CEO is a busy job, so I understand. And I'm sure he'll respond to OP. But keep in mind just because he posts his email publicly doesn't mean he's actually any more reachable for it. [1]: https://news.ycombinator.com/item?id=9646672

> I'm sure being a CEO is a busy job, so I understand.

Why would you understand?

It is a simple feat to respond. At the very least, he could have forwarded your email to someone, CC'd you on it, and said "Hey X, please look into this case for me."

No response to an email is above all disrespectful, regardless of how busy he might be. It also implies that he is giving away his email address as a PR move.

These pieces of information that keep dropping on HN is going to make me move my business away from Stripe too.

Stripe, why would you screw yourself so badly when you could easily have been the only viable option by simply not behaving like PayPal?..

Re: Stripe Is the New PayPal

#286

Post by jliptzin »

Danski0 wrote: post #60

After using Stripe for our subscription service for over 1year with 100'000euro+ monthly transcation we got a 10day notice that they would shut us down. Also the mail was send late on friday before a long weekend, yeah! =) No warnings, no chance to appeal, no heads up and absolutly no possiblity to call them. Lost around half a million euros before we could get our customers exported to another payment processor. Tha…

We were booted from stripe when a couple of customers just decided to chargeback all of their previous transactions, each of which was pretty small, without first contacting us, so it was too late to issue refunds. That pushed our chargeback rate over the 2% threshold, so we were booted. Unfortunately the chargeback rate is measured as % of transactions and not volume. Seems like a great way to screw with a competitor would be to get a few cards with different names (on one of my cards alone I can assign up to 100 authorized users with new names and addresses), make a bunch of small transactions, charge them back a couple months later, then watch your competition get booted from stripe.

Re: Stripe Is the New PayPal

#287

Post by sdalfakj »

bargl wrote: post #177
disappointeddev wrote: post #104

Earlier quoted context omitted.

As I said, I will be writing a more lengthy blog post about this. The only reason I posted this on HN is because I want Stripe to give me attention and solve the problem. I love Stripe's API which is why I want them to solve the issue. Also, I made a new account for my privacy.

Thanks for replying. I'd like it if you could link to the blog after you've finished writing it, but if you don't want to for privacy purposes I get that. I just see people running off in a million directions in the comments on HN and it's nice to wait and let things play out a little before we jump on any bandwagons, this is an event that requires a follow up to be a complete story. So please also follow up with you…

> let things play out a little

Dude will be losing money while you get your popcorn ;)

Re: Stripe Is the New PayPal

#288

Post by pki »

gharial wrote: post #202
onewaystreet wrote: post #99

Earlier quoted context omitted.

They do in their TOS.

https://stripe.com/us/prohibited-businesses >Video game or virtual world credits: Sale of in-game currency unless the merchant is the operator of the virtual world I am. >Virtual currency or stored value: Virtual currency that can be monetized, resold, or converted to physical or digital products and services or otherwise exit the virtual world (e.g., Bitcoin); sale of stored value or credits maintained, accepted and…

Game currency purchases that aren't converted or sold are still disgustingly, ridiculously high risk, bordering internet pharmacy level stuff, especially if a lot of under-18 play your game.

Re: Stripe Is the New PayPal

#289

Post by cdcarter »

awfullyjohn wrote: post #256
mrkurt wrote: post #245

Earlier quoted context omitted.

I don't think it's that. It's just really hard to scale support. It doesn't matter if you shovel money at it, it's still hard. Companies that are growing very quickly will always have periods of less-than-ideal customer support.

I don't think thats true. I work at a startup that's recently raised our series B, and I use our customer service all the time. I always get excellent response times, and I'm treated just like every other user of our product. Our CEO spends a ton of time ensuring that operations and customer happiness are priorities. If it's a focus of the company, it's definitely possible.

Your CEO spending a LOT of time on just prioritizing support probably means that support is a hard problem that needs serious resources.

Re: Stripe Is the New PayPal

#290

Post by codexon »

ebspelman wrote: post #258
codexon wrote: post #243

Earlier quoted context omitted.

I have trouble believing even a 2% chargeback rate would endanger Visa/MC. It seems like they hardly spend any time investigating chargebacks and most disputes seem to be won by the buyer by default unless they have a habit of filing chargebacks.

Where do you think the refund for a chargeback comes from? With a 3rd-party aggregator like Stripe, it comes directly out of the merchant's Stripe account (i.e. Stripe's aggregated account with Chase Paymentech). If the merchant has already withdrawn all of their money from their Stripe account, then Stripe is left holding the bag. Accounts with 1-2% chargeback rate are incredibly costly. Stripe is potentially having…

If a payment is reversed, fine. The buyer got all their money back.

But adding a $25 "administrative fee" or a $10,000 fine seems like a frivolous act, given how little effort is spent investigating chargebacks.

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